Mexico Expected to Approve Tax on Junk Food, Including Imports
Mexican lawmakers are expected to approve soon a new tax on junk food in an effort to combat rising levels of obesity. The lower house of the Mexican legislature approved Oct. 17 a 5% excise tax on foods with 275 or more calories per 100 grams as well as a one peso (about eight cents) per liter tax on soft drinks. The Senate, where at least one member has proposed increasing the junk food tax to 8%, is expected to approve the bill by the end of the month.
Sandler & Travis Trade Advisory Services’ Mexico City office reports that under this legislation the additional IEPS tax would be imposed on imported as well as domestic goods, including snacks, confectionery products, chocolate and other goods derived from cocoa, flans and puddings, fruit and vegetable candies, potato chips, peanut butter, hazelnut butter, ice cream, popsicles and sweetened breakfast cereals.